TNAG-2494-FCO40-3626-Future-of-Hong-Kong-constitutional-development-Chinese-reac-1992 — Page 104

CONFIDENTIAL

HKC 01214

88

Thanks

FROM: P F Ricketts

DATE :

Hong Kong Department

3 December 1992

CC: PS

PS/Baroness Chalker

PS/Mr Goodlad

PS/PUS

Mr Davies, FED

Special Advisers

Mr Hum

HONG KONG : TELEPHONE CALL FROM THE GOVERNOR

118)

1.

The Governor telephoned Mr Goodlad on the secure telephone this morning (the first of what are planned to be regular weekly calls).

2. The Governor's main points were that:

locals were panicking - business community's anxiety was increasing Jardines and Swires were nervous;

he did not think that there was much that could be done

in the short term about the fall in the Hang Seng index;

this would be quite the wrong time to give any sign that we were shifting gears under the pressure of the Chinese propaganda onslaught. To do that would undermine the

Governor's supporters in LegCo;

he was watching the middle ground in LegCo carefully. There were signs that some of the independents such as Martin Barrow were interested in producing compromise proposals on

the functional constituencies and the Election Committee;

governorcall,FUT,kr

CONFIDENTIAL